Magma Group Bhd is set to acquire Christine’s Bakery for a total transaction value of RM3.2 million, comprising RM2.8 million in cash and the assumption of RM400,000 in liabilities, as the Main Market-listed group expands its food and beverage (F&B) portfolio.
The acquisition will be undertaken through Magma’s 80%-owned subsidiary, Magma Food Ventures Sdn Bhd, which has entered into a conditional share sale agreement to acquire the entire equity interest in Magma Christine Sdn Bhd, the holding company behind Christine’s Bakery.
The remaining 20% of Magma Food Ventures is held by Evermont Holdings Sdn Bhd.
The proposed acquisition covers CL Bakery Sdn Bhd and Kitchen CL Sdn Bhd, which collectively operate the bakery and F&B business.
Christine’s Bakery currently operates 10 outlets across the Klang Valley, supported by central production, food preparation and kitchen facilities.
The transaction also includes the brand’s intellectual property, encompassing trademarks, trade names, logos, websites, social media accounts and marketing materials.
Magma Group Managing Director and Chief Executive Officer Datuk Seri Thomas Liang Chee Fong said the acquisition would broaden its consumer-facing business portfolio, complementing its existing interests in hospitality, property development and lifestyle retail.
“We see opportunities to strengthen Christine’s Bakery by leveraging Magma’s operational expertise and resources while preserving the brand’s established identity,” he added.
Following completion, Magma plans to improve operational efficiency through outlet rationalisation, procurement and cost optimisation, workforce efficiency and menu enhancements.
The group will also focus on improving central kitchen utilisation and strengthening profitability at individual outlets rather than pursuing aggressive expansion.
“Our immediate priority is execution and cost management, rather than rapid outlet growth,” Liang said.
He added that future expansion would be assessed against strict investment criteria to ensure sustainable returns and long-term shareholder value.
The RM3.2 million transaction will be funded through Magma’s internally generated funds, with completion subject to the fulfilment or waiver of conditions under the share sale agreement.
The acquisition marks another step in Magma’s diversification into consumer and lifestyle businesses, building on its existing hospitality operations and involvement in beverage retail through its joint venture with CHAGEE Malaysia.
